S&P rates TeamSystem notes B

Standard & Poor's said it assigned a preliminary B long-term corporate credit rating to Titan 2 SpA.

The outlook is stable.

As part of the refinancing, Titan 2 SpA will be renamed TeamSystem Holding SpA.

The agency also said it assigned a preliminary B rating to TeamSystem's proposed €300 million senior secured floating-rate notes due 2020. The recovery rating on the proposed notes is 4, indicating 30% to 50% expected default recovery.

The ratings reflect the company's highly leveraged financial risk with a private equity ownership that led it to adopt aggressive financial policies, S&P said.

The ratings also consider its fair business risk profile with smaller operations and weaker geographic diversity than larger business services providers, the agency said.

These weaknesses are partially offset by its position as the market leader in Italy with a broad, diverse client base, S&P said.

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